Bills/S. 474

Fair Funding for Rural Hospitals Act

Fair Funding for Rural Hospitals Act

In CommitteeHealthcareSenateSenate Bill · 119th Congress
Bill Progress · Senate
Introduced
Committee
Passed House
Passed Senate
Passed Both
Signed

Plain Language Summary

# Fair Funding for Rural Hospitals Act - Summary **What the Bill Does:** This bill would guarantee that rural hospitals treating many low-income patients receive a minimum of $20 million per state annually from Medicaid (the federal health program for low-income individuals) for fiscal years 2025-2029. These extra payments—called "disproportionate-share" payments—are meant to help hospitals that serve larger numbers of poor and uninsured patients. The bill protects this funding level even if other budget cuts or funding changes would normally reduce it, and it increases the amount each year to account for inflation. **Who It Affects:** Rural hospitals and the low-income patients they serve would be the primary beneficiaries.

The bill aims to ensure these hospitals maintain financial stability despite treating many uninsured and Medicaid patients who may not generate sufficient revenue to cover costs. **Current Status:** The bill is currently in committee, meaning it hasn't yet been debated or voted on by the full Senate. It was introduced by Senator John Barrasso (R-WY).

CRS Official Summary

Fair Funding for Rural Hospitals ActThis bill establishes a minimum funding allotment for Medicaid disproportionate-share hospitals (DSHs). (DSHs are hospitals that receive additional payments under Medicaid for treating a large share of low-income patients.)Specifically, the bill establishes a minimum allotment of $20 million per state for FY2025-FY2029, increased for inflation in subsequent years, despite any required reductions or other applicable funding calculations.

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Latest Action

February 6, 2025

Read twice and referred to the Committee on Finance. (text: CR S796)

Subjects

Health care coverage and accessHealth facilities and institutionsMedicaidRural conditions and development

Sponsor

R
Barrasso, John [R-WY]
R-WY · Senate
3 cosponsors

Key Dates

Introduced
February 6, 2025
Last Updated
February 6, 2025
Read Full Text on Congress.gov →
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